Birmingham boss Alex McLeish has engaged in contract talks with Mehdi Nafti, with preliminary discussions having yielded 'positive' results.
Nafti's existing deal at St Andrews expires at the end of the season, with Birmingham having a one-year option on his services.
"It's the silly season for those types of comments," McLeish told the club's official website.
"Maybe some people are trying to unsettle others but we have an option on Mehdi.
"I've had some pretty positive talks with Mehdi, so that kind of talk in the papers doesn't bother me."